EAST LANSING, Mich. — An update on East Lansing income tax revenue collection is scheduled to take place at the East Lansing City Council meeting on Tuesday, July 16 at 7 p.m. in Courtroom 2 of the East Lansing 54B District Court, 101 Linden St.
As of July 5, 2019, $4.6 million has been collected in income tax revenue since the beginning of January, which includes monthly and quarterly withholding from East Lansing employers and quarterly estimated payments from individuals and businesses. A chart of the revenue collected by month can be viewed here: https://eastlansing.granicus.com/MetaViewer.php?view_id=2&event_id=1854&meta_id=81174 (second quarter and June withholding payments continue to be collected). It is important to note that the final collection numbers for the first year of the income tax will be unknown until after 2019 income tax returns are filed next year. At that time, a portion of the revenue collected throughout 2019 will be refunded to some taxpayers, while others will owe additional amounts.
The City of East Lansing is currently on track to collect approximately $9 million by the end of 2019, which is the budgeted amount included in the City’s Fiscal Year 2020 Budget.
“Our income tax revenue to date indicates that we are on track to collect what we estimated we would in the first year, which is great news,” said East Lansing City Manager George Lahanas. “These funds will help move East Lansing forward with much-needed reinvestment in public safety and infrastructure, while also helping us to safeguard the future financial sustainability of the City by addressing our long-term pension challenges.”
By City Charter, the income tax revenue will be used for supplemental pension payments (60 percent), police and fire protection (20 percent) and infrastructure improvements (20 percent). The City has already started reinvesting in public safety, with the addition of two new firefighters and two new police officers and the recent purchase of a new firetruck with better high-angle rescue capability. Community members will also see the income tax dollars at work this summer and fall with the renovation of the four existing baseball fields at Patriarche Park. The City will continue to keep the community updated as additional income tax dollars are used.
With the implementation of the income tax, the City’s property tax reduction went into effect, decreasing the City’s operating millage rate from 17.5362 mills to 12.5362 mills. Property owners saw this reduction for the first time on their summer property tax bills and will continue to see the reduction in all future years that the income tax is in place. The income tax is time-limited to 12 years.
Community members and employers with questions about income tax registration and payments are reminded that they can contact East Lansing Income Tax Administrator DaMar Boyd at (517) 319-6862 or incometax@cityofeastlansing.com. For additional information, visit www.cityofeastlansing.com/incometax.